Question

The simple interest on an investment of $9250 over 3 years is $2747.25. If the annual interest rate is R, find R as a percentage to the nearest one decimal place. Enter each line of working as an equation.

Answer 1

To find the annual interest rate, R, we can use the formula for simple interest: Simple Interest = Principal × Rate × Time. In this case, the principal is $9250, the time is 3 years, and the simple interest is $2747.25. The annual interest rate, R, is approximately 9.9%.

Step-by-step explanation:

To find the annual interest rate, R, we can use the formula for simple interest:

Simple Interest = Principal × Rate × Time

In this case, the principal is $9250, the time is 3 years, and the simple interest is $2747.25.

Substituting these values into the formula, we have:

$2747.25 = $9250 × R × 3

Dividing both sides of the equation by $9250 × 3, we get:

R = $2747.25 / ($9250 × 3)

R ≈ 0.099

Converting this decimal to a percentage gives us approximately 9.9%.